Bill Text: CA AB1740 | 2017-2018 | Regular Session | Amended
Bill Title: Budget Deficit Savings Account.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2018-04-26 - From committee: Be re-referred to Com. on BUDGET. Re-referred. (Ayes 8. Noes 0.) (April 26). Re-referred to Com. on BUDGET. [AB1740 Detail]
Download: California-2017-AB1740-Amended.html
|
Amended
IN
Assembly
April 17, 2018 |
| Assembly Bill | No. 1740 |
| Introduced by Assembly |
January 03, 2018 |
LEGISLATIVE COUNSEL'S DIGEST
Existing law provides that under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, with the expense being computed as of the time of the commencement of the fire. Existing law also provides that under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, is, in the case of a total loss to the structure, the policy limit or the fair market value of the structure, whichever is less, and, in the case of a partial loss to the structure or loss to its contents, the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the
policy limit, whichever is less.
This bill would delete the provisions regarding the actual cash value of the claim of total loss to the structure and would instead require that the actual cash value of the claim, for either a total or partial loss to the structure or its contents, be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
The Legislature finds and declares all of the following:SEC. 2.
Article 7.8 (commencing with Section 16419.5) is added to Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code, to read:Article 7.8. Budget Deficit Savings Account
16419.5.
(a) The Budget Deficit Savings Account is hereby created in the State Treasury.16419.6.
For purposes of this article, “state budget deficit” means a determination by the Governor that estimated resources are inadequate to fund General Fund expenditures for the current or ensuing fiscal year, after setting aside funds for the reserve for liquidation of encumbrances, at a level equal to the highest amount of total General Fund expenditures estimated at the time of enactment of any of the three most recent Budget Acts, adjusted for both of the following:(a)Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire.
(b)Under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, for either a total or partial loss to the structure or its contents, shall be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. In case of a partial loss to the structure, a deduction for physical depreciation shall apply only to components of a structure that are normally subject to repair and replacement during the useful life of that structure.
